Definition
Tracking error is the divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge fund, mutual fund, or exchange-traded fund (ETF) that did not work as effectively as intended, creating an unexpected profit or loss. Tracking error is reported as a standard deviation percentage difference, which reports the differ
In Panel Profits
In the Panel Profits market platform, Tracking Error Definition, Factors That Affect It, Example applies standard portfolio management principles to comic assets and physical collections.
Common mistakes
Do not infer unobserved prices.